Purpose

• This bill aims to ensure that down payment assistance for first-generation homebuyers is awarded only to eligible applicants by adding a formal verification and documentation process.

Main Provisions

• The agency must create forms and procedures for requesting and reviewing applications for down payment assistance.
• The agency will evaluate complete applications to determine eligibility under the new subdivision.
• If the agency partners with a community organization to deliver assistance, the partner must use the agency’s forms and verify the eligibility of each applicant.
• Each application must include an affidavit created by the agency. The affidavit must include:
  • a statement confirming compliance with the eligibility requirements,
  • general penalty warnings,
  • a disclaimer that false or misrepresented information can lead to fraud or perjury prosecutions under specified Minnesota laws.
• An applicant must sign the affidavit to complete the application.
• The applicant bears the burden of providing documentary evidence to verify eligibility.
• To the extent practicable, the agency may help applicants obtain the necessary verifications and documents.
• The agency must verify each applicant’s eligibility before issuing down payment assistance, whether directly or through a community partner.

Eligibility Verification Process

• Applications must be complete and verified for eligibility before any down payment assistance is issued.
• The agency develops and uses standardized forms and procedures to solicit, review, and confirm eligibility.
• If a community organization is used, that partner must follow the agency’s forms and conduct eligibility verification.

Roles and Responsibilities

• Agency: Develop forms, oversee the application process, verify eligibility, and issue affidavits.
• Community organizations: Use the agency’s forms and verify eligibility when delivering assistance on behalf of the agency.
• Applicants: Provide documentary evidence to prove eligibility; sign the agency’s affidavit; comply with all requirements.

Documentation and Affidavits

• Applications must include an affidavit created by the agency.
• The affidavit includes compliance statements, penalty warnings, and a fraud/perjury disclaimer.
• The burden to provide documentary evidence rests with the applicant.
• The agency may assist the applicant in obtaining the necessary verifications and documents.

Penalties for Fraud and Perjury

• False or misrepresented information in the application can lead to prosecution for fraud under sections 609.52 and 609.821 and for perjury under section 609.48.

Significance and Changes to Law

• Adds subdivision 2a (the Application subdivision) to Minnesota Statutes 2024 section 462A.41.
• Establishes a formal, verifiable process for determining eligibility for first-generation homebuyers down payment assistance.
• Introduces mandatory affidavits, documentation requirements, and penalties for inaccuracies.

Practical Impact

• Prospective applicants should expect more documentation and verification steps.
• Organizations delivering assistance will need to use agency-approved forms and follow the verification process.
• Potentially stronger safeguards against awarding assistance to ineligible applicants.

Relevant Terms - first-generation homebuyers down payment assistance - eligibility verification - application - affidavit - documentary evidence - the agency - community organization / partner - forms developed by the agency - penalties - fraud - perjury - Minnesota Statutes 2024 section 462A.41 - subdivision 2a - down payment assistance - requirements and disclosures - prosecution under sections 609.52, 609.821, 609.48